The Portland daily press., 1887-01-31
A Sweeping Measure.

So large a transaction as the purchase of
one railroad by another is always amatter Of
great interest to the people of the regions
tributary to either road. For various reasons
the purchase of the Eastern road by the
Boston Maine, purchase that the bill
now before the legislature is intended to
sanction, is of more than usual interest to
the people Of this State. The relations of
the Boston g. Maine to the railways of Maine
is almost too well known to require explana-
tion. The controlling portion of the stock
Of the Maine Central has for long time
been owned by the Eastern road, while the
Eastern itself has more recently been leased
to the Boston q Maine. The controlling
stock of the Portland & Rochester also is
held directly by the Boston & Maine So it
happens in effect that this latter corporation
controls the whole great system Of railways
from Boston to Vanceboro, with all the
branches that have from time to time come
under control of either the Eastern or
Maine Central; and it also controls the line
from Portland to Rochester, N. H. But this
control is far different from the control
that would be acquired by actual pur-
chase under legislative sanction. The
Maine Central is yet distinct corporation,
with its own officers and its own system of
management; so is the Portland & Roches-
ter.
The bill now before the legislature, which
was evidently drawn by some attorney in the
commonwealth" of Massachusetts,, would
authorize the Boston & Maine to purchase
the Eastern Railroad, and after "such acqui-
s'tion" also purchase any railroad that is
-s.ssted either by it the Boston & Maine)
or by said Eastern Railroad Company under
lease, contract, or through ownership of
stock" What are the roads SO operated?
They are the Portland, Saco q Portsmouth,
now operated by the Eastern under 800
year lease; the Maine Central, with all its
branches, virtually operated by the Eastern
through ownership of stock; and the Port
land e. Rochester, also operated through
ownership of stock. More than this the bill
would seem to authorize the Boston & Maine
to purchase any other Maine railroad when
ever it might acquire controlling portion of
Its stock. If the bill means anything 1t
means the sanction Of great railroad con-
solidation which would merge the great sys-
tenn of Maine with the Massachusetts, road,
and transfer to Boston the management
which now has its seat at Portland. This is
very sweeping measure.
Still another provision of the bill which
suggests interesting possibilities is this ::
1.-THE purchases herein authorized, and
each of them, shall be made ON such terms
and conditions as may be agreed to by the
respective boards of directors of the pur-
chasing and selling corporations and as shall
be approved by the votes Of a majority In the
interest Of the stockholders of each of said
corporations at meetings called for the pur-
pose" This gives the minority stockholders
no power to hinder such great change In a
property in which they have invested their
money; and there is grave question wheth-
er the Legislature Of this State can constitu-
tionally consent to such change.
Still another provision Of interest is the
clause of the bill which allows the Boston q
Maine to increase its own capital stock to
sueh an amount as may be agreed upon by
itself and the selling corporation, and as
shall be approved by the board of railroad
commissioners. The consent OF the selling
corporation would of course be the consent
of its majority stockholders. In the case Oh
the Maine Central the majority Of the STOCK
is already under control Of the Boston ana